Condo Hotel Questions
Hello BP !
I'm a lifelong renter in Northern California. Am about to retire with a huge inheritance. Only about half the money will be Cap Gains free though because it was part of an Estate and Taxed. About half the money will be 100% all Cap Gains due to long length of ownership and depreciation. (I'm assuming cost basis will be zero as I'm still waiting for reply from accountant.) I do not really have a say in getting bought out because I'm a small owner in many properties, and I don't want to be difficult to the family.
I do NOT want to become a Landlord in any shape way or form, but I am going to have a ton of money that I can put into 1031 Exchange to avoid Cap Gains from the Feds and the state of CA which is very high.
I am intrigued by the idea of buying a Condo/Hotel and being able to stay there for a week or two a year, and get some ROI. I know there are limited operators in Vegas. (MGM, Vdara, Trump and a few more.) My understanding is that HOA's are quite high, and the split is around 50/50. The only other thing I get is that a higher floor is more likely to get rented. (Also, I want to be near the Strip for restaurants - I do not golf.)
If anyone has experiences owning a condo in one of those hotels ... feel free to describe your experiences. I haven't really been able to find good resources ...
Are people breaking even on these ? What's the frequency of rental ? Are you getting nickle and dimed on top of HOA for other things ?
I know there are 1031 Exchange companies I could buy a small piece of different properties, but I know less about that than I do staying in Vegas. And getting locked in for 7-10 years does not appeal to me at all.